After touching a low of nearly 0.68500 on the 29th of September, the NZD/USD has managed to incrementally climb higher. Even in the midst of nervous conditions on global equity markets, the NZD/USD has been able to demonstrate another slight rise in value today. As of this writing, the Forex pair is near the 0.69600 juncture and short-term support technically can be perceived nearby around the 069400 mark. Resistance for the NZD/USD can be considered to be a hair below the 0.70000 juncture at this time.
However, the NZD/USD movement higher, which has been achieved in small steps the past couple of trading days, has not exactly triggered an avalanche of positive optimism. The Forex pair remains in plain sight of important lows and one bad turn downwards could put the NZD/USD on the precipice of testing lows seen on the 20th of August which bounced around the 0.68200 price before climbing higher.
While the NZD/USD may have produced a move higher from what can be considered ‘rock bottom’ prices by some, the move has not taken the pair out of its lower price band. As the global equity indices continue to look fragile and financial institutions look for safe havens, the NZD/USD continues to also look rather vulnerable via a fundamental standpoint. When the lows of August were demonstrated, the last time the NZD/USD had tested such depths was in November of 2020.
Speculators who are skeptical about the NZD/USD ability to climb higher the past couple of days should look at current resistance levels to judge their durability. If the price levels of 0.69850 to 0.69950 hold back a rising tide, this may be viewed as a bearish signal within the NZD/USD and an opportunity to sell the pair short term.
The NZD/USD has a habit of moving fast and traders need to be careful with the amount of leverage they use when wagering on the pair. The NZD/USD has a real habit of producing rather demonstrative trends and, until resistance is penetrated above the 0.70100 juncture, the Forex pair can still be considered within a testing ground of its lower depths which may produce further downside momentum sooner rather than later.
NZD/USD Short-Term Outlook
Current Resistance: 0.69950
Current Support: 0.69400
High Target: 0.70970
Low Target: 0.68200
